In a strategic move aimed at achieving tax justice for all citizens, Syria’s caretaker government is embarking on a comprehensive overhaul of its tax system within a three-month timeframe. A preliminary draft of the new tax framework is expected to be unveiled in four months. Additionally, the government is considering measures to minimize the imposition of fines and interest on taxpayers as part of this reform.
Syria’s finance minister has announced that a significant pay raise—up to 400 percent—is slated for a substantial number of public sector employees next month. This increase follows a reorganization of government departments intended to enhance accountability and operational efficiency. To finance this substantial salary increment, which is projected to cost approximately 1.65 trillion Syrian pounds—or nearly $127 million at current exchange rates—the government plans to leverage a combination of regional support, fresh investments, and efforts to recover Syrian assets that are currently held abroad.
Under the previous regime of President Bashar al-Assad, the average salary for public sector workers was around $25 per month, relegating many individuals and families to live below the poverty line. As highlighted by Mohammed Abazeed, the finance minister of Syria’s interim government, the upcoming salary increase aims to attract and retain individuals with the necessary skills, experience, and education crucial for the nation’s reconstruction efforts. The government plans a meticulous review of around 1.3 million registered public sector employees to identify and remove fictitious workers from its payroll.
This initiative is expected to bolster integrity within the employment framework. Furthermore, the government is optimistic about recovering up to $400 million in frozen Syrian assets overseas, which could provide essential funds to cover the initial expenses associated with these reforms.